Permanent Accounts

Permanent accounts are those Balance sheet accounts such as Assets, Liabilities & Owner's equity that will live forever in the life of a business and are not 'closed' during year end. This is opposite of temporary accounts such as revenues & expenses that are closed out each year to arrive at net income number, and this net income is transferred either to Retained Earnings on the Balance sheet, or paid out in the form of dividends and closed to Cash.

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